Property Valuation Alternatives for Expats Buying a House in the Netherlands

Your agent just let you know your offer has been accepted for your Dutch dream house. Next up is arranging your mortgage. One crucial step that is often arranged through your mortgage advisor is obtaining a property valuation for your mortgage application. The reason why mortgage providers require this is because they want to be sure what the real value of the property is. If you placed a really high offer, the real value will perhaps be lower than what you offered.

 

In this article we will inform you about the different valuation alternatives available, along with their pros and cons, as well as associated costs.

Option 1: Independent Appraisal (Market Value Report)

 

Opting for an independent appraisal involves hiring a certified appraiser to assess the property’s value. This method provides an unbiased and professional opinion on the market worth of the house. The appraiser considers various factors such as location, condition, size, and recent property sales in the area. This information is published in a report and checked by an organization called NWWI for completeness and accuracy. Independent appraisals are recognized by mortgage lenders and are typically required for mortgages exceeding a certain loan-to-value ratio such as 100% financing.

 

Pros:

 

• Accepted by all mortgage lenders.
• Generally the most accurate value.
• Can include renovations / value after renovations in the report.

 

Cons:

 

• Higher cost compared to other valuation alternatives (expect 700,- to 800,-euro).
• Requires finding and hiring a certified appraiser independently.
• May prolong the mortgage application process (can take up to 3 weeks before you get the report).

Option 2: Desktop (Hybrid) Valuation

 

A desktop valuation, recently becoming available and gaining popularity in The Netherlands, is a property valuation method that is conducted remotely without physically inspecting the property. Instead of an on-site visit, the valuation is based on available data and information about the property, such as its size, location, condition, and recent comparable sales in the area. Desktop valuations are typically performed by licensed appraisers or valuation experts who analyse property databases, market trends, and other relevant information to estimate the value of the property. They may also use advanced software and algorithms to aid in the valuation process.

 

This type of valuation is commonly used for properties that are relatively straightforward, such as standard residential houses or apartments. Buyers often choose this alternative when the cost of conducting an on-site appraisal is deemed unnecessary or impractical.

 

Pros:

 

• Desktop valuations offer convenience as they can be conducted remotely without the need for the appraiser to physically visit the property.
• Desktop valuations are completed much faster (within a few business hours).
• It costs between 70,- and 90,- euro.

 

Cons:

 

• The desktop valuation is specific for one mortgage provider as they have different policies on this, so you need to know upfront to which provider you will submit your mortgage application.
• Generally desktop valuations are only accepted for mortgage applications with loan-to-value ratios below 90%.
• In some cases a desktop valuation is not possible if there are not enough similar properties that can be remotely compared.
• Properties with unique characteristics, extensive renovations, or significant structural issues may require an on-site appraisal to provide a more accurate or higher valuation.

Conclusion:

 

Obtaining a property valuation is an essential step when buying a house in the Netherlands. While there are different valuation alternatives available, each with its own pros and cons, it’s important to consider the requirements of your mortgage application and your specific circumstances. Independent appraisals are reliable and offer the most accurate assessment of a property’s worth, while the desktop valuation is cheaper and more time-efficient. Understanding these alternatives and their associated costs will empower expats to make informed decisions throughout the home buying process.

Understanding Nationale Hypotheek Garantie (NHG) for Expats in the Netherlands

We understand that navigating this country’s mortgage market is not an easy task for expats living in The Netherlands. One important aspect to consider when buying a home here and applying for a mortgage is the Nationale Hypotheek Garantie, commonly referred to as NHG. NHG is a mortgage guarantee scheme designed to provide financial security to borrowers and lenders.

 

In this blog, we will explore what NHG is, its benefits, and how it can be beneficial for expats looking to buy a home in the Netherlands.

What is Nationale Hypotheek Garantie (NHG)?

 

Nationale Hypotheek Garantie, translated as National Mortgage Guarantee, is a guarantee scheme introduced by the Dutch government to promote responsible lending and homeownership. The primary objective of NHG is to protect both borrowers and lenders in the event of mortgage default, offering security and favourable terms for borrowers and reducing the risk for lenders. In our clientele it is often first-time buyers that are applying for a NHG mortgage.

Benefits of NHG for Expats:

 

Lower interest rates: One of the significant advantages of NHG is that it often allows borrowers to secure lower interest rates compared to regular mortgages without NHG. In regular mortgages without NHG it is the loan-to-value ratio that determines your interest rate with a mortgage provider. Often first time buyers are want to borrow 100% of the property value and their rate will be higher than in case they would put down a large down payment. The reason is that with a lower loan-to-value ratio there is less risk for a mortgage provider. NHG mortgage are generally classified in the utmost lowest risk category and having a mortgage with NHG can result in substantial long-term savings, making homeownership more affordable for expats.

 

With NHG, expats may have the opportunity to borrow a larger amount, as lenders typically take the lower risk associated with the guarantee into account. This can be particularly beneficial for those looking to purchase a higher-priced property or for those with limited funds for a down payment.

 

NHG also offers more favourable terms than with a regular mortgage for home-buyers. For example with NHG, if you can no longer afford to live in your property due to a divorce, unemployment, disability or partner death, and you are forced to sell your property but at a lower price than your outstanding mortgage debt, they could arrange a debt reduction or pardon with the mortgage provider.

Eligibility for NHG:

 

To be eligible for NHG, expats must meet specific criteria, including:

 

1. Maximum property value: The property’s value must fall within the NHG limits, which are revised annually. It is important to consult with one of our mortgage advisors to determine the current limits.
2. Maximum mortgage amount: The NHG guarantee has a cap on the mortgage amount, which is also adjusted annually. The maximum mortgage amount takes into account the value of the property and possible renovations or energy saving measures.
3. Primary residence: NHG is only available for borrowers who intend to use the property as their primary residence. It is not applicable to second homes or investment properties.
4. Mortgage affordability assessment: Expats must undergo a thorough affordability assessment by the lender to ensure they can comfortably repay the mortgage. The assessment typically considers factors such as income, expenses, and existing debts. An NHG mortgage application is generally more strict than a regular mortgage application.

 

There is however a downside to NHG mortgages, its not for free. You have to pay a one-off commission for NHG that is 0,6% of the initial mortgage amount. Like some other mortgage related expenses, this commission is tax deductible. For most clients this commission is earned back within three years. If you are not sure if you plan to stay in The Netherlands that long, you could opt to skip NHG for that reason.

No-obligations mortgage meeting

 

For expats planning to buy a home in the Netherlands, understanding the benefits of Nationale Hypotheek Garantie (NHG) is important. NHG offers various advantages, including lower interest rates, increased borrowing capacity, and enhanced security for lenders. By meeting the eligibility criteria and securing an NHG-backed mortgage, expats can enjoy favourable loan terms and greater peace of mind. To explore NHG options further, it is recommended to consult with our mortgage advisors who can provide personalized guidance based on individual circumstances.

Unlocking your dream home: Why Expats in The Netherlands choose Independent Expat Finance for mortgage advice

Dear Home Buyers in The Netherlands,
Congratulations on embarking on the exciting journey of finding your dream home! As you navigate through the process, it’s crucial to make informed decisions, especially when it comes to securing a mortgage. While you may be tempted to go directly to a bank for your mortgage needs, we advise you to consider the invaluable benefits of utilizing Independent Expat Finance, an independent mortgage advisor specializing in serving expats. Allow me to highlight a few compelling reasons why this choice can significantly enhance your home buying experience.

Our way of working

 

First and foremost, Independent Expat Finance works exclusively for you, the home buyer. Unlike a bank representative who is primarily focused on promoting their institution’s products, Independent Expat Finance is your advocate. Our primary goal is to find the best mortgage solution tailored to your specific needs and financial situation as an expat. This personalized approach ensures that your interests as an expat are the top priority throughout the entire process.

One of the most significant advantages of Independent Expat Finance is our extensive network of lenders specifically catering to expats. While banks offer their own mortgage products, Independent Expat Finance has established relationships with over 40 lenders. This access to a specialized pool of lenders allows us to compare multiple options. By leveraging our network, we increase your chances of finding the most competitive interest rates, favourable repayment terms, and potentially saving you a substantial amount of money over the long term.

Discovering the Dutch mortgage market

Navigating the mortgage landscape as an expat can be complex and overwhelming, especially in a foreign country like The Netherlands. Independent Expat Finance possesses the expertise and knowledge to guide you through the maze of mortgage options tailored to expats. We will explain the details, answer your questions, and ensure you have a clear understanding of the terms and conditions associated with each mortgage possibility. With our guidance, you can make well-informed decisions, empowering you to select the mortgage that aligns with your financial goals and aspirations as an expat.

Furthermore, Independent Expat Finance can help streamline the entire mortgage application process for expats. We understand the unique documentation requirements and challenges that expats face and will assist you in gathering the necessary paperwork, ensuring a smooth and efficient process. We will also handle the communication between you and the lender, saving you time and reducing the stress associated with navigating the bureaucratic procedures independently. With our expertise in expat finance, you can navigate potential roadblocks with ease, minimizing any delays and maximizing your chances of securing your dream home.

Independent Expat Finance for your support 

Finally, Independent Expat Finance offers ongoing support even after you’ve obtained your mortgage. As an expat, you may encounter unique financial situations or changes in your expat status. Independent Expat Finance can provide valuable advice on various aspects, such as refinancing options, early repayment strategies, or switching your mortgage to a buy-to-let product. We also advice our clients on damage or risk insurances. By maintaining a long-term relationship, we become a trusted resource you can turn to for any mortgage-related queries as an expat, ensuring that you always have an expert by your side.

In conclusion, choosing Independent Expat Finance over going directly to a bank offers an many benefits that can make a significant difference in your home buying journey as an expat in The Netherlands. With our personalized service, access to a specialized pool of expat lenders, expertise in expat finance, and ongoing support, we provide the guidance and peace of mind you deserve as an expat.

Remember, buying a home as an expat is a monumental decision, and it’s essential to make choices that align with your best interests as an expat. By selecting Independent Expat Finance, you are taking a proactive step towards securing the most favourable mortgage terms and ensuring a smooth and enjoyable home buying experience as an expat in The Netherlands.

Wishing you all the best in finding your perfect home!

How much transfer tax do I need to pay when buying a property in The Netherlands?

We wish we could hand out free tax exemptions but the Dutch tax authority “Belastingdienst” tends to disagree. When you are buying a property here you will often have to pay transfer tax, which in Dutch is called “overdrachtsbelasting”. This article is all about how much you need to pay, what it is for different type of properties or clients and anything else important you need to know.

For buying properties that will function as a primary residence the transfer tax is 2% in 2023. However, there are two exemptions:

New-build exemption

 

Under the new-build exemption, you are not required to pay transfer tax if the property is intended for residential purposes, is newly constructed and has not been occupied prior to the sale. Do realise that with new-build properties you start paying your mortgage whilst construction is taking place.

Starter exemption

 

If you are buying a property up to 440.000,- euro you can qualify for a starter exemption, meaning 0% transfer tax. You will have to meet the criteria though. You need to be under 35 years of age when the transfer takes place and you have not used the starter exemption before when buying a property. In case you are buyer with a partner and one of you is above 35 and the other below, then one of you is entitled to 0% tax over 50% of the property, meaning between the two of you 1% tax will be paid. When placing a bid right up to 440.000,- euro you need to be cautious. If for example the property is not built on its own land but the land is leased from the municipality, in that case the capitalized leasehold can impact the value over which transfer tax needs to be paid and possibly push you over the threshold.

 

For properties that are not considered a primary residence, such as second homes, holiday homes and investment properties, the transfer tax is 10.4% in The Netherlands. A possible way to avoid this tax is to first live in the property yourself making it your primary residence and later use it as a second home or investment property.

 

You pay transfer tax when your notary appointment for the transfer of ownership takes place. The notary is responsible for the calculation of the transfer tax that is due. But it is smart to always check with your agent and or mortgage advisor upfront what you can expect. 

 

Bear in mind that tax regulations can change over time. Often they are set for the coming year and towards the end of the year the government will announce any upcoming changes. It might also be smart to have a transfer take place just before or after new regulation is introduced. We saw this two years back when the starter exemption was introduced. Side effect was however that this pushed demand and prices up, so for most buyers at the time overall it ended up costing more.

Get in touch

 

Give us a call if you are interested to discuss further with one of our mortgage advisors. 

Can I take my old mortgage with me when I move house?

In just over a year mortgage rates have increased from 1 to 4%. These higher rates mean higher monthly expenses and less borrowing capacity when applying for a mortgage. This in turn together with higher energy costs is pushing prices down in the market. Where it is less interesting to get into the market for first time buyers and is causing the market sentiment to change, for home-owners it presents an interesting opportunity.

Amongst mortgage providers it is common practice that you can take along your mortgage when you move home. Right now we have many clients where this is a possibility and so they can buy a new property at a good price and for a large part finance it with their current low interest mortgage. Do not forget though, to take along your mortgage you must stay with the same lender.

However, sometimes it is not as easy in practice. One problem we often encounter is that if the remaining interest fixed term is less than 10 years (often the case as many clients lock their rates for 10 years), it presents challenges in the maximum borrowing capacity of a client. This is because in that specific situation, a mortgage provider will calculate how much mortgage you are eligible for at a fictive interest rate of 5% rather than the actual much lower rate you are paying. They do this according to the AFM rules so that clients do not face a situation in the short run where they can no longer afford their mortgage if the rates would rise too steeply. All together this means you can borrow less, in some cases we see a that if the rate was locked for over 10 years a client can borrow 100.000 euro more than if it was locked for 10 years initially or less.

A possible solution could be the bring in some extra cash or if there is a slight shortage you could apply for a bridging loan till your current house is sold. But either way, by taking your mortgage along you have an advantage compared to other potential buyers on the market who need to apply for a new mortgage and will have higher monthly expenses.

In many cases your new home might have a different price than your current mortgage balance. If you are buying a house that is more expensive, besides taking along your mortgage you will also need to add an extra loan component to it. This part is of course at current market rates rather than your old rate.

Similarly if you have a NHG mortgage and you want to take it along to a property that is over the NHG limit, by taking your mortgage along you will loose your NHG benefits. In turn, the lender will look at your loan to value ratio instead and maybe give you a discount based on that. 

For the rest it is important to check the terms of your mortgage provider on this topic. Different providers have different policies if you can take along the mortgage if you have not yet sold your current place, or how much overlap you are entitled to. If it is not possible to take your mortgage along, you could check if ‘rentemiddeling’ is an option. In that case, the bank can offer you a rate in between your current rate and the actual market rate and because you are moving house there will be no penalty. 

If you are considering moving, let is check your situation upfront with you so your options are clear. Knowing your budget but also the expected monthly expenses in the different scenarios is a good starting point before you start viewing properties. 

Dutch mortgage changes in 2023

With the year almost over it is time to look at the changes that lay ahead with regard to buying a property and obtaining a mortgage.

1. NHG limit will increase with € 50.000

 

NHG stands for the Dutch National Mortgage Guarantee foundation. They offer property owners a safety net if they can no longer afford their mortgage or if they sell their property and have a residual debt to pay. Right now you can apply for an NHG mortgage (at a one-off cost of 0.6% of the mortgage amount) if the property is valued up to € 355.000. To make this more accessible the limit will increase to € 405.000 as of January 1st. If you want to add in energy saving measure on top of the purchase the limit is even 6% higher at € 429.300. Also good to know, you can already buy a property now in December and ask the mortgage provider to wait till approving your application straight away in 2023 so you can make use of this deal.

2. Tax free gift limit will decrease

 

Currently home buyers up to 40 years in age were able to receive a one-off tax free gift up to € 106.671. As of 2023 this limit will decrease to € 28.947. The government has decided to change this to allow for a more equal playing field between home buyers with wealthy or not so wealthy parents. For gifts over this limit the tax will be at least 10% over that part.

3. Transfer tax limit starters and investors

 

Starters in the housing market are offered a tax exemption on the transfer tax. Right now this applicable for homes up to € 400.000 in value. There are some criteria you must meet, you are under 35 years old, plan to live in the property yourself and have not received this exemption before. As of 2023 the limit will increase to € 440.000. 

For private and business investors buying properties the transfer tax will increase from 8% to 10,4% as of January. By increasing this further the government hopes first time buyers will have a more competitive position to purchasing a property. If you buy a pied-a-terre or a holiday home in The Netherlands the higher transfer tax will also be applicable for you.

4. Mortgage interest tax rebate

 

Next year the mortgage interest tax rebate is being reduced further to the lowest tax bracket of 36,93%. This means that if you have a high income and are paying income tax of 49,5% (income over € 73.071) you can now only get the tax rebate of 36,93%. This is a measure that has gradually been implemented over the last years and the purpose is to not give home owners with a high income a greater benefit of the mortgage interest tax rebate.

5. Effect of student loans during a mortgage application

 

If you have a student loan that you are still paying back, you can borrow less in a mortgage. However the impact of the student loan is less that for example a personal loan with a bank or private lease car. For those loans the weight factor is 2%. As of next year the student loan weight factor is 0,65% for the old student loan system and 0,35% for those with a new student loan system. An example, ff you have a student loan (new system) of € 20.000 the impact on your borrowing capacity is about € 14.000 negative.

Schedule a call with one of our mortgage advisors

 

Lets us know if you want to discuss how these changes will affect your personal situation and mortgage eligibility.

5 frequent questions by first time buyers

What does the process look like when I want to buy a house?

 

The first step is a good preparation. You should have a clear view on what are you looking for and if for example you want to be advised by a real estate agent. Get in touch with your mortgage advisor to determine what your maximum mortgage is so. On the Dutch website Funda you can find the most extensive list of available properties on the market. Next you can visit a property and check all the documents. If you want to proceed you can put down an offer and conditions such as a financial clause for a mortgage approval or whether or not you want to include a technical inspection. If the seller accepts your offer, a provisional purchase agreement will be drafted by their agent. Once this is signed by both parties and you have a valuation report we can submit your mortgage application. Upon approval of your mortgage application you need to wait till the agreed transfer date. The notary will prepare the legal documents, such as the mortgage and transfer deed. They will also oversee the financial transaction and make sure you get the keys.

 

How much money do I need to bring in myself?

 

In the Netherlands you can finance up to 100% of the property value with a mortgage. Any additional costs you need to pay for yourself. The main costs are for your agent, your mortgage advisor, your notary and valuation. Often you also have to pay transfer tax which is mostly 2%. If there is a difference between the purchase price and the valuation you also need to cover this difference. Mostly we see clients paying between 4 to 6% from their pocket, but it really depends on the circumstances.

 

Is it wise to take out a mortgage at the maximum of my loan capacity?

 

It can be tempting to take out a mortgage at the maximum of your capacity. But if you have a high mortgage it means your monthly interest and loan repayment will also be high. There are risks involved and you should always discuss this with your mortgage advisor. 

 

Can I take out a mortgage if I have a student loan?

 

If you have a student loan you can often still get a mortgage. It does impact your maximum mortgage amount, but because of the low interest and weight factor in the calculation this is often manageable. We are happy to calculate this for you.

 

Do I meet the requirements for a NHG mortgage?

 

The purchase limit for NHG (translates National Mortgage Guarantee) is 355.000 euro in 2022 and will increase to 405.000 euro on January 1st 2023. With a NHG mortgage you get a better interest rate and have extra protection in case of certain situations. Besides this limit there are some other factors that determine if your qualify for NHG. For example:

 

• You need to pay your full mortgage back on a linear or annuity scheme (interest only is not an option)
• If the valuation points out much maintenance is needed you are required to also arrange a technical inspection
• To prove your income an employment statement is always required (other documents are not allowed)
• Bonuses/allowances are often not allowed in the calculation for your maximum mortgage
  

With NHG it is important that the financial benefit of the better interest rate outweighs the costs to obtain the NHG mortgage (0,6% of the mortgage amount). 

Anything unclear? Send us a message and we will get back to you asap. 

How does the energy label impact the price of a Dutch property?

According to the NVM (a Dutch real estate agent association), housing prices for energy efficient homes outpaced those with a lower energy efficiency. These properties are also on the market for a shorter period of time and buyers are more keen to overbid on them.

 

The NVM analysed the energy labels of over 10,000 properties that have recently been sold to come to these conclusions. According to the association the findings are directly related to the energy crisis as a result of the war in Ukraine. Potential energy costs play a more important role when selecting a property and deciding how much to bid on it. The sales volume of “green houses” did not contract as much as other properties.

Energy labels in the Netherlands

 

All homes in The Netherlands have an energy label. This label gives you an indication how energy efficient a property is compared to a similar property. The labels range from A to G, where A to C is generally considered energy efficient and D to G not so.

 

The impact of the energy label on the price of a Dutch property

 

The biggest difference occurred in properties that have the least energy efficiency label G vs label C. A property with label C on average sells for 12% more than one with label G. On an average property this is a difference of € 50.000,-. Just last year the difference between the prices on these properties was 8%. A jump from label E to label B also shows an increase in difference of 10% this quarter. The difference between label A and C remains rather flat at 5,5%.

 

Agents have been aware for a longer time that energy inefficient homes are in less demand despite the already lower asking price. This because it is difficult to find a contractor and building materials have also increased in price. So it is not just energy costs but also building material prices that impact energy inefficient homes the most.

 

A practical example

 

The association gives a practical example in their analysis. A 1930’s property in Amersfoort with energy label E. In the same street there is an identical property with label A, renovated with floor, wall and roof insulation, solar panels and a hybrid water pump. This adds €75.000,- in value, which is a 14.3% more value than the E label property.

 

The difference in value is the largest in regions with less demand for properties. On the Dutch market this is the case for the city of Enschede, far out east in The Netherlands. Here changing your energy label from G to C will give you +15% in extra value. In contrast, in Utrecht the same jump will only give you +10% extra value.

 

Final thoughts

 

Our team has a tip for property seekers. When you receive property documents from a selling agent always check the owner’s questionnaire. Here you can find information on the monthly energy bill of a property. But rather than just looking at this figure also check how much energy was consumed last year by the household. Multiply this by the current energy prices and you will have an accurate picture of what you can expect rather than what the seller is paying right now.

Book a free mortgage intake meeting

 

Our team of mortgage advisors is ready to assist you in finding the right mortgage. Contact us today for a no-obligation consult and discover the many options available to you.

What can you expect in a mortgage intake meeting?

Before you start viewing potential properties to buy it is a good idea to get insight in your financial capabilities. The main question is often “how much can I borrow?”. But besides this there is much more to discover with regard to mortgages.

 

Our mortgage intake meetings are always free of charge and do not lock you down to do business with us. Rather, it gives us the opportunity to assess your situation, give information on your possibilities and the services we provide.

To assess your situation you need to answer the following questions:

 

1. If you are from outside the EU, what type of residence permit do you have?
2. What is your age?
3. What type of employment/contract do you have?
4. What is your current income?
5. Do you have any outstanding loans or bad credit history?
6. What is your current living situation (already own a home or renting)?
7. If you already own a home, what is your property value, how much is your outstanding mortgage and how long have you received a tax rebate?

What are your possibilities:

 

1. Are you eligible for a mortgage?
2. How much can you borrow?
3. What are the interest rates?
4. What are the different repayment schemes?
5. Are you entitled to a tax rebate on your interest payments and one-off mortgage expenses?
6. What other costs will you encounter when you buy a property?
7. What will your monthly costs be when you buy a home for a certain price?

What services do we provide:

 

1. What is the difference between going to an independent mortgage advisor and a bank?
2. What fees do we charge?
3. How long does it take to get a mortgage approved?
4. What does the process look like from start to end?

In contrast to what some mortgage advisory firms do, we do not ask you to sign a service agreement after an intake meeting but only at a later stage when you have bought the home and our work really starts. Till that stage we think it is a good idea that you are free to explore what options there are and change your mind if you are unhappy with your advisor. An intake meeting is generally 45 to 60 minutes and can be done in person, by online video chat or phone.

Independent mortgage advice

 

As our clients are all expats and mostly do not speak Dutch or have a thorough understanding of the process of buying a property in the Netherlands and how it works with mortgages, you can expect a very high level of guidance from us throughout the whole process. We provide clear explanations for any questions you have and go through all the main documents together with you. We also have access to all mortgage providers in the Netherlands, so we can advise you what the best option is out for your situation in regard to interest rate, terms & conditions and application process. This is what sets us apart from arranging a mortgage through a bank or even other independent mortgage advisors. 

 

Click here if you want to book a mortgage intake meeting!

An overview of changes for Dutch mortgages in 2022

At the start of every new year there are some changes in the rules concerning mortgages. We have summarized the main changes that impact home owners and new mortgage applications.

1. Tax rebate on mortgage interest payments and expenses

 

The tax rebate on mortgage interest payments will drop for home owners with an income over EUR 69.398. Right now the rebate is 43% but this will drop to 40% at the start of the new year. Similarly the tax rebate will also drop on the one-off mortgage expenses such as a valuation, mortgage advice and mortgage deed & registration fees.

2. Transfer tax

 

The new transfer tax exemption for buyers under 35 buying a property up to EUR 400.000 in which they intend to live will remain 0% (instead of 2% or 8%). If you have previously received this exemption you cannot get it on your next property.

3. NHG limit & commission

 

Next year you will be able to apply for a NHG mortgage on properties with a value up to EUR 355.000 (currently the limit is EUR 325.000). The commission you pay for the NHG mortgage will drop to 0,6% of the mortgage amount (right now this is 0,7%). You also get a tax rebate on this commission. If you want to finance energy saving measures on a NHG mortgage the limit is in total EUR 376.300.

4. Impact of a private lease car on your maximum mortgage

 

If you are personally leasing a car all mortgage providers consider this as an outstanding loan during a mortgage application. Till now 65% of the lease agreement value was registered with BKR (the Dutch credit registration institution), but will now be listed for 100% as of April 2022. If you have a private lease car this make a big difference on your maximum mortgage (expect to be able to borrow EUR 50.000 to EUR 150.000 less).

Get in touch

 

Lets us know if you want to discuss how these changes will affect your personal situation and mortgage eligibility.